While Bitcoin has been toying with the idea of a bull run since its major drop from the all-time high of $20,000 at the end of December 2017, many commentators and analysts think 2020 will be the start of this run.
The year has started off on a positive note as January was the coin’s best start to a year for seven years, having risen up 30 percent in the month. Moreover, February backed up the coin’s upward trend by pushing above $10,000 for the first time since September last year.
This, coupled with the upcoming Bitcoin halving in may, seems to be strong enough for an official bull market to be called, but where this bull market ends is the real question. Some commentators have already made predictions. Tom Lee predicts the coin will cross its old high and get to $27,000 by the summer of this year, and meanwhile, Anthony Pompliano has gone one step further and thinks $100,000 is possible by December of 2021.
Current analysis has come through that suggests that Pompliano’s prediction is not that far off and if things continue in the vein that they are the rally could indeed top $100,000 in under two years. More so, the analysis suggests that it will be unlikely that Bitcoin will be as low as $8,200 ever again.
Kicking off after the halving
In a series of tweets, PlanB, a well-respected forecaster explained how he believed that as of May this year BTC/USD would trade above $10,000. This is at a time when Bitcoin’s reward halving will come to be and the bull run would be expected to really kick-off.
The way this forecast is being presented is through the Stock-to-flow model that has been put forward by PlanB. This model uses two indicators to chart Bitcoin’s price trajectory: the number of Bitcoins already available versus the number of new Bitcoins added to circulation.
Historically highly accurate, the model puts Bitcoin on par with gold in terms of its status as hard money with a supply that is virtually impossible to manipulate, unlike fiat currency.
With this model, the prediction is that Bitcoin will trade at an average of $100,000 between 2021 and 2024.